Because proper forecasting is the foundation of revenue and profit optimization, the discipline (and the industry overall) can't continue evolving optimally until we realize that we need a new way to forecast that reflects our new reality.Įssentially, what revenue managers are doing today (and what we're still teaching the new generation) is using historical internal occupancy data to predict the number of expected booked rooms. While the traditional (constrained/unconstrained) forecasting approach that was based on internal historical reservation data served us well for a few decades, it's time to let it go and build a new one because it is no longer relevant. The RMS doesn't (and shouldn't) ingest and display every data source that provides insight into a market-winning strategy, so the organization also needs dynamic visualization tools to analyze and report insights. Static, spreadsheet-driven reporting does not tell the story in a compelling enough fashion to rally the organization around a strategy. Visualizations, rich in insights, but simple in presentation support the kind of story telling needed to help stakeholders understand and get behind recommendations. What is true post-pandemic, was true pre-pandemic, although now the need may be more acute. To be effective and efficient in today's complex, digital environment, revenue managers must have and actually USE a revenue management system to manage routine day-to-day pricing decisions. This means spending the time to work with the system to understand how it thinks, not just overriding when the RM doesn't agree. Once the system is up and running, revenue managers will then have the time to build strategies, working in close collaboration with their counterparts, and to do exception management, focusing on periods that require human expertise layered onto system insights. Staying on top of your strategies and breaking down silos in your organization is essential to positively impact your bottom line. The process should focus on fine-tuning your strategy customers' behavior, needs, and demand is, and will continue to, change and disrupt the hospitality industry with new competitors and alternative accommodation options. In terms of tools, the agile and robust revenue management technology available today allows you to better manage and implement your strategy and provides you with the insight needed to change your strategy as circumstances evolve, one single source of truth.
Communicate your strategy clearly, so all departments focus on targeting and driving revenues cohesively.
STAR TREK ONLINE TACTICAL BUILD 2019 TRIAL
Revenue Managers who survived the last two years, mostly by trial and error, have emerged much stronger. Then along came COVID-19 and its impact on travel created historical comparisons that were so distorted that they were meaningless in the old decision-making process.īut the worst is behind us, travel is returning and many markets are already performing at or above their 2019 pre-pandemic level.
Though there has been continual evolution over the last two decades in the way hoteliers monetize the power of data to make pricing and strategy decisions, one constant remained: The dependence on historical data.
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